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Competition strategy and efficiency evaluation for decision making units with fixed-sum outputs

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  • Yang, Feng
  • Wu, Desheng Dash
  • Liang, Liang
  • O'Neill, Liam

Abstract

This paper develops a DEA (data envelopment analysis) model to accommodate competition over outputs. In the proposed model, the total output of all decision making units (DMUs) is fixed, and DMUs compete with each other to maximize their self-rated DEA efficiency score. In the presence of competition over outputs, the best-practice frontier deviates from the classical DEA frontier. We also compute the efficiency scores using the proposed fixed sum output DEA (FSODEA) models, and discuss the competition strategy selection rule. The model is illustrated using a hypothetical data set under the constant returns to scale assumption and medal data from the 2000 Sydney Olympics under the variable returns to scale assumption.

Suggested Citation

  • Yang, Feng & Wu, Desheng Dash & Liang, Liang & O'Neill, Liam, 2011. "Competition strategy and efficiency evaluation for decision making units with fixed-sum outputs," European Journal of Operational Research, Elsevier, vol. 212(3), pages 560-569, August.
    • Handle: RePEc:eee:ejores:v:212:y:2011:i:3:p:560-569
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    7. Thanasis Bouzidis & Giannis Karagiannis, 2022. "Extending the zero-sum gains data envelopment analysis model," Journal of Productivity Analysis, Springer, vol. 58(2), pages 171-184, December.
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    9. Yongjun Li & Wenhui Hou & Weiwei Zhu & Feng Li & Liang Liang, 2021. "Provincial carbon emission performance analysis in China based on a Malmquist data envelopment analysis approach with fixed-sum undesirable outputs," Annals of Operations Research, Springer, vol. 304(1), pages 233-261, September.
    10. Thanasis Bouzidis & Giannis Karagiannis, 2022. "A note on the zero-sum gains data envelopment analysis model," Operational Research, Springer, vol. 22(3), pages 1737-1758, July.
    11. Xi Xiong & Guo-liang Yang & Kai-di Liu & De-qun Zhou, 2022. "A proposed fixed-sum carryovers reallocation DEA approach for social scientific resources of Chinese public universities," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(7), pages 4097-4121, July.
    12. Ding, Tao & Zhang, Yun & Zhang, Danlu & Li, Feng, 2023. "Performance evaluation of Chinese research universities: A parallel interactive network DEA approach with shared and fixed sum inputs," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    13. Zhu, Qingyuan & Li, Xingchen & Li, Feng & Wu, Jie & Zhou, Dequn, 2020. "Energy and environmental efficiency of China's transportation sectors under the constraints of energy consumption and environmental pollutions," Energy Economics, Elsevier, vol. 89(C).
    14. Sebastián Lozano & Gabriel Villa, 2023. "Multiobjective centralized DEA approach to Tokyo 2020 Olympic Games," Annals of Operations Research, Springer, vol. 322(2), pages 879-919, March.
    15. Dongwei Yang & Qiong Xia, 2018. "Behavioral DEA model in evaluating the regional carrying states in China," Annals of Operations Research, Springer, vol. 268(1), pages 315-331, September.
    16. AGRELL, Per & HATAMI-MARBINI, Adel, 2011. "Frontier-based performance analysis models for supply chain management; state of the art and research directions," LIDAM Discussion Papers CORE 2011069, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    17. Bouzidis, Thanasis & Karagiannis, Giannis, 2022. "An alternative ranking of DMUs performance for the ZSG-DEA model," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    18. Yang, Min & Li, Yongjun & Chen, Ya & Liang, Liang, 2014. "An equilibrium efficiency frontier data envelopment analysis approach for evaluating decision-making units with fixed-sum outputs," European Journal of Operational Research, Elsevier, vol. 239(2), pages 479-489.
    19. Qinglong Gou & Liang Liang & Zhimin Huang & Susan X. Li, 2017. "Editor’s Introduction," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 899-905, July.
    20. Sekitani, Kazuyuki & Zhao, Yu, 2021. "Performance benchmarking of achievements in the Olympics: An application of Data Envelopment Analysis with restricted multipliers," European Journal of Operational Research, Elsevier, vol. 294(3), pages 1202-1212.
    21. Yang, Min & Li, Yong Jun & Liang, Liang, 2015. "A generalized equilibrium efficient frontier data envelopment analysis approach for evaluating DMUs with fixed-sum outputs," European Journal of Operational Research, Elsevier, vol. 246(1), pages 209-217.
    22. Qingyuan Zhu & Jie Wu & Malin Song & Liang Liang, 2017. "A unique equilibrium efficient frontier with fixed-sum outputs in data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(12), pages 1483-1490, December.
    23. Li, Feng & Zhang, Danlu & Zhang, Jinyu & Kou, Gang, 2022. "Measuring the energy production and utilization efficiency of Chinese thermal power industry with the fixed-sum carbon emission constraint," International Journal of Production Economics, Elsevier, vol. 252(C).
    24. Thanasis Bouzidis & Giannis Karagiannis, 2021. "An Alternative Ranking of DMUs Performance for the ZGS-DEA Model," Discussion Paper Series 2021_12, Department of Economics, University of Macedonia, revised Oct 2021.
    25. Thanasis Bouzidis & Giannis Karagiannis, 2022. "Extending the Zero-Sum Gains Data Envelopment Analysis Model," Discussion Paper Series 2022_06, Department of Economics, University of Macedonia, revised Aug 2022.

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